WiseGuys CRM provides a practical and efficient way to do Recency, Frequency, Monetary (RFM) value analysis for multi-channel marketers.
How We Do It
- Using customer purchase data imported from your order management system, the WiseGuys RFM algorithm segments your customer base into 5 levels based on the recency of their last purchase.
- Then each recency segment is split into 5 levels based on the frequency of their purchases.
- Each frequency segment is split into 4 levels based on the monetary value of the total value of their purchases to date.
- The result is a matrix of 100 cells (5 x 5 x 4), with each cell having roughly the same number of customers.
- Using these test cells, you can select the right audience for your marketing campaign.
Selection Filters
One of the challenges of doing this type of analysis is that you can find yourself averaging apples and oranges together.
WiseGuys CRM solves this by giving you a control panel where you can filter the raw data, down to the customer level if desired, to reduce the noise level and manage the parameters of your customer data. The control panel includes the following five filters:
- Customer Type – You can choose to include only certain types of customers in the analysis. For example, you might include only retail and exclude wholesale.
- Product Class – You can select certain product classes and exclude others. For example, you could ignore catalog orders or free promotional items.
- Source Code – You can include certain source codes. For example, you might want to ignore point-of-sale customers.
- Sales Territory – You might want to select certain geographic areas and exclude others.
- Division Code – You can include or exclude company divisions. For example, you might include wholesale and exclude retail.
